TAX ON NON-RESIDENTS

Dominion, Volume 35, Issue 45, 17 November 1941, Page 3

TAX ON NON-RESIDENTS

Broken Hill Companies

The Melbourne Stock Exchange, in informing members that the North Broken Hill, Company’s dividend of I/- - a share, payable on December 18, will be eubiept to the deduction under the New South Wales tax affecting non-resident shareholders, has stated that the tax will also be deducted by other companies similarly 'earning profits in New feoutn Wales. Broken Hill Proprietary and Broken Hill South will deduct tax from their forthcoming dividends. The tax is payable on an apportioned amount of the dividend, according to the extent to which the company s profits are earned in New bouih Wales. It i» at the rate of 6d. if the aggregate amount of dividend subject to tax received by the shareholder for 12 months does, not exceed £2OO, and the shareholder is a resident of Australia other than . New South Wales. Otherwise it is 1/-. m the pound, dr, if the dividend is paid to a company, the rate is o/6. No deduction will be made from dividends payable to a New South Wales resident. If shares have been sold cum dividend and delivery is not made until after tne closing of transfer books, the buyer is only entitled to deduct the net amount of dividend, less tax at the minimum rate. Pending advice of this net amount, settlements between brokers may proceed on the basis of the fulL/rate of dividend, and the buyer will subsequently be required to make a refund to the seller. . Q Ou the Broken Hill Proprietary dividend of 9d. a share, the tax will probably amount to about 1/6 for 100 shares.